Euronews

In a statement, CEO Silvano Cassano of Italy’s national carrier said the tie-up, due to end in 2017, was no longer “strategically or commercially beneficial” to the firm’s ambitious turnaround plan.

The move will affect various agreements on sales, markets and cargo services.

It is of little surprise to industry insiders as it comes after Alitalia recent deal with Etihad Airlines.

Etihad Airways adopted a 49% stake in the ailing airline in January in a deal worth €560 million, to become the company’s largest stakeholder. Crucially, it also gives the Gulf carrier a strategic foothold in the European market.